'IFC staff knew of the environmental and social risks in the palm oil sector, including unresolved land disputes and non-compliance with its social and environmental standards, but chose to ignore the risks,' said Marcus Colchester of the Forest Peoples Programme.

'It is clear to us, and the audit confirms this, that IFC suffers a systemic problem whereby the pressure to lend and to support business interests overcomes prudence, due diligence and concern for social and environmental outcomes.'

The IFC said that it was now reviewing its procedures.

'It is anticipated that in future, programmes such as Wilmar Trading would be categorised as higher risk,' said a management response to the audit.